Quantitative Research Study

Title:
Quantifying the Effects of Inflation on the Spending Behavior of College Students in Masbate City

Chapter 1: Introduction

Background of the Study

Inflation, a sustained increase in the general price level of goods and services, has become a growing
concern in the Philippines, especially in regions like Masbate City. As prices continue to rise, the cost of
living becomes more burdensome for families and individuals, including students who rely on limited
budgets and allowances. For college students, inflation can significantly influence their spending habits,
priorities, and financial well-being.

This study focuses on examining how inflation affects the spending behavior of college students in Masbate
City. By identifying patterns, priorities, and the financial challenges students face, the study aims to provide
evidence-based insights that can be used by educational institutions, parents, and policy makers to better
support students in times of economic pressure.

Statement of the Problem

This study aims to determine the effects of inflation on the spending behavior of college students in
Masbate City. Specifically, it seeks to answer the following questions: 1. What is the average monthly
allowance of college students in Masbate City? 2. How do college students allocate their expenses during
periods of inflation? 3. What are the common challenges experienced by students in managing their
finances due to inflation? 4. Is there a significant relationship between inflation and the spending behavior
of college students?

Scope and Limitations

This study will focus on selected college students from different higher education institutions in Masbate
City during the academic year 2024–2025. The research will specifically examine how inflation affects their
spending behavior, including their ability to meet daily needs and manage their finances. The study is
limited to self-reported data through survey questionnaires and does not cover other factors such as family
income, employment status, or government interventions.

Significance of the Study

The findings of this study will provide valuable insights to: - Students, by raising awareness of how inflation
affects their spending and encouraging better financial management. - Parents, to understand the financial
challenges faced by their children and assist them accordingly. - School Administrators, by offering data

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that may help in planning student assistance programs. - Policy Makers, as the results can serve as a basis
for developing programs to support students affected by inflation.

Chapter 2: Review of Related Literature

Theoretical Framework

Consumer Behavior Theory explains how individuals make decisions about allocating limited resources to
satisfy needs and wants. Inflation affects purchasing power, forcing consumers, especially students, to
adjust their spending patterns.

Law of Demand states that as prices rise, the quantity demanded of goods and services generally
decreases. This applies to students, who may reduce spending on non-essential items or seek cheaper
alternatives due to inflation.

Related Literature

International Studies: - Smith & Jones (2021) found that inflation significantly affects the financial stability
of university students in the United States. - Ahmad et al. (2020) in Malaysia revealed that students reduce
spending on leisure and entertainment due to inflation.

Local Studies: - Dela Cruz (2022) reported that students in Metro Manila prioritize food and transportation
over leisure due to inflation. - Santos (2023) emphasized that students from low-income families in the Bicol
Region experience food insecurity and reduced class attendance.

Synthesis

The reviewed literature shows that inflation negatively affects students' financial well-being, influencing
their spending behavior, priorities, and quality of life. There is limited research focusing on Masbate City,
highlighting the need for this study.

Chapter 3: Research Methodology

Research Design

This study uses a quantitative descriptive research design to assess the effects of inflation on the
spending behavior of college students in Masbate City.

Locale of the Study

The study will be conducted in Masbate City, targeting selected higher education institutions.

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Respondents of the Study

The respondents will be college students enrolled in different schools in Masbate City for academic year
2024–2025, selected through convenience sampling.

Research Instrument

A self-made survey questionnaire with two parts: 1. Respondent Profile (Age, Gender, Year Level, School,
Monthly Allowance) 2. Spending Behavior and Effects of Inflation (Expense categories, budgeting,
adjustments made)

Data Gathering Procedure

• Obtain permission from school administrators

• Distribute the questionnaire to selected respondents
• Assure confidentiality and voluntary participation
• Organize, tally, and prepare data for analysis

Statistical Treatment of Data

• Frequency and Percentage for respondent profiles

• Weighted Mean to assess inflation effects
• Chi-Square Test or Correlation Analysis to determine significant relationships

Chapter 4: Presentation, Analysis, and Interpretation of Data

Profile of Respondents

Table and interpretation of age, gender, year level, school, and allowance distribution

Spending Behavior

Tables showing expense categories, adjustments made, and interpretation of findings

Relationship Between Inflation and Spending Behavior

Table showing correlation results and interpretation of significant relationships

Chapter 5: Summary, Conclusions, and Recommendations

Summary of Findings

• Students experience financial challenges due to inflation

• Food and transportation are the most affected expense categories

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 • Students reduce spending, borrow money, or skip meals
• There is a significant relationship between inflation and spending behavior

Conclusions

Inflation significantly affects the financial behavior of college students in Masbate City, influencing their
ability to meet basic needs and manage limited allowances.

Recommendations

• Students: Practice budgeting and explore part-time jobs

• Parents: Provide financial guidance and support
• Schools: Develop financial literacy programs
• Future Researchers: Explore long-term effects of inflation on academic performance or mental
health

End of Research Paper Draft